Before Concluding on the Effectiveness of a Control, an Auditor

question 21

Multiple Choice

Before concluding on the effectiveness of a control, an auditor must determine:

• A)The required degree of company compliance with control procedures.
• B)The maximum possible dollar amount that would not affect a user's decision based on the financial statements.
• C)The actual degree of company compliance with control procedures.
• D)The nature, extent and timing of planned substantive procedures.

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Definitions:

Quality Control Measures

Quality control measures are the techniques and activities used to ensure that the quality of a product or service meets certain standards and specifications.

Special Causes

Unusual factors or events that impact the process and result in variations not accounted for by the existing process model.

Quality Control Variables

Variables that are monitored and controlled during a manufacturing or service process to ensure the quality of the output.